Penny Stock Under Rs 25: SBC Exports Reports 104% PAT Growth in Q2 FY26, Order Book at Rs 300 Crore

SBC Exports Limited (BSE: 542725, NSE: SBC), a garment manufacturer, exporter, and IT & Support Services provider, announced its financial results for the quarter (Q2) and half year (HY1) ended September 30, 2025. The results were approved by the Board of Directors and announced on November 7, 2025 (Ref: D/2025-26/37).

Q2 FY26 Financial Highlights (Standalone)
The company reported strong year-over-year growth. Revenue increased by 33.66 per cent to Rs 64.81 crore from Rs 48.49 crore in Q2 FY25. EBIDTA rose by 78.18 per cent to Rs 9.80 crore, while PAT doubled by 104.28 per cent to Rs 10.50 crore. The EBIDTA margin stood at 15.12 per cent and the PAT margin improved by 51.47 per cent to 15.42 per cent.

Half-Year (HY1 FY26) Standalone Performance
For the first half of FY26, revenue increased by 19.54 per cent to Rs 126.17 crore. EBIDTA rose by 30.74 per cent to Rs 14.93 crore, and PAT increased by 34.43 per cent to Rs 13.90 crore. The EBIDTA margin was 23.48 per cent, while the PAT margin reached 20.93 per cent.

Consolidated Financial Highlights
On a consolidated basis, SBC recorded revenue of Rs 84.70 crore, marking a 28.49 per cent rise. EBIDTA stood at Rs 10.27 crore, up 81.13 per cent, and PAT was Rs 11.36 crore, reflecting 113.94 per cent growth.

Management Commentary and Outlook
Mr. Govind Ji Gupta, Managing Director and Promoter of SBC Exports Limited, stated that the company’s consistent performance reflects its operational resilience and growth momentum. The Order Book stood at Rs 300 crore, providing strong visibility for H2 FY26 and beyond. The company is focusing on innovation, technology, and talent to strengthen competitiveness and create long-term value.

Recent Business Developments
SBC Exports secured multiple work orders and export contracts, particularly in garment exports to Dubai-based clients. Domestic orders in IT Support Services were obtained from government and institutional clients. In FY25, the company reported sales of Rs 231.52 crore, a 21.21 per cent rise, with net profit increasing by 28.33 per cent to Rs 12.05 crore.

The company also signed a sponsorship agreement with Punjab Kings for the IPL 2026 season to enhance brand visibility. Additionally, SBC refreshed the corporate logo of its fashion brand “F-Route” under the theme “F-route uniquely you,” focusing on individuality and quality design.

Industry Context: India’s Textile Sector Outlook (2025–2030)
India’s textile industry is projected to expand from USD 225 billion in 2025 to USD 350 billion by 2030, growing at a 10 per cent CAGR. Exports are expected to rise from USD 35–40 billion to USD 100 billion by 2030, supported by free trade agreements and the government’s 5F framework (Farm-Fibre-Factory-Fashion-Foreign). The sector is also expected to generate 35 million new jobs and attract investment in smart textiles and automation under the extended Production Linked Incentive (PLI) scheme worth Rs 10,683 crore.

Disclaimer: The article is for informational purposes only and not investment advice.